Carriveau Corporation Has Two Divisions: Consumer Division and Business Division

question 255

Multiple Choice

Carriveau Corporation has two divisions: Consumer Division and Business Division. The following data are for the most recent operating period: The company's common fixed expenses total $63,360.
The company's overall break-even sales is closest to:

• A) $398,837
• B) $288,296
• C) $488,153
• D) $89,316

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Costs

The increase in total cost that arises from producing one additional unit of a good or service.

Output

The amount of goods or services produced by a company, industry, or economy within a certain period.

Variable Costs

Costs that vary directly with the level of output, such as raw materials and direct labor expenses.